BlackBerry posted a quarterly loss and its stock is getting smoked

BlackBerry shares fell as much as 7% ahead of the open on Friday morning after the company reported weak quarterly earnings.

The smartphone maker reported a second-quarter adjusted loss of 13 cents per share on revenues of $US490 million, down 46.5% compared to a year ago.

Analysts had expected a loss of 9 cents and revenues of $US605.3 million, according to Bloomberg.

BlackBerry is in the midst of a turnaround to boost the revenues from its software division. Once all the rage, BlackBerry smartphones and the company’s market share was eaten away by rivals.

In the statement, CEO John Chen said, “I am confident in our strategy and continued progress, highlighted by our fourth consecutive quarter of year-over-year double digit growth in software licensing revenue and sixth consecutive quarter of positive free cash flow.”

The company also confirmed that it will launch a phone that runs on Android.

“At the same time, we are focused on making faster progress to achieve profitability in our handset business. Today, I am confirming our plans to launch Priv, an Android device named after BlackBerry’s heritage and core mission of protecting our customers’ privacy.”

For the rest of the year, BlackBerry said it expects “modest sequential growth” in revenues.

The stock has fallen 36% year-to-date.

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